Airbus, a major player in the aerospace industry, has recently announced plans to cut up to 2,500 jobs in its Defense and Space division. This decision comes in response to a tough business environment, particularly in the satellite sector where they've faced significant losses. The European company aims to complete these cuts, which represent 7% of the division's workforce, by mid-2026 after discussions with unions.

Airbus builds satellites and other space equipment, and holds key stakes in European missile, fighter, and space-launch programs. However, they've been hit hard by charges totaling 1.5 billion euros due to issues with their high-tech OneSat project and rising costs in defense.

The job cuts follow over a year of efficiency reviews in the defense and space business, known internally as the ATOM project. Mike Schoellhorn, CEO of the division, stated that the moves are necessary to adapt to a challenging space market. Airbus has been developing turnaround plans for their Space Systems business, even as talks about satellite consolidation continue with companies like Italy's Leonardo and France's Thales.

Job losses will affect both the Space Systems business and the Germany-based defense unit's headquarters. Airbus, with headquarters in France and core operations in Germany, Britain, and Spain, has briefed the governments of these host nations about the restructuring plans.

The company is now facing months of talks with unions and host nations to determine the impact on their high-tech manufacturing. Earlier this year, Airbus Group CEO Guillaume Faury mentioned looking for opportunities to create scale in defense and space, especially in satellites where traditional players have faced disruption from new constellations.

Despite increased defense spending across European nations following Russia's invasion of Ukraine, local industries have complained about limited benefits. A significant portion of re-armament spending has gone to U.S. suppliers, highlighting the competitive landscape Airbus is navigating.

Airbus Trims Space and Defense Jobs to Stay Competitive

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